Two years ago I bought a car with cash.  $9,000 to be exact.  Car was listed for $11,000. I showed up with $11,000 cash in my hand.  Told the guy "I'm willing to give you $9,000 for it."  

He said "No.  Can't sell it for less than $10,000."

I said, "I'm offering $9,000."  

He said, "You have more than $9,000 in your hands."

I said, "Yeah, that's because I'm going to look at a car that costs $14,000.  But I don't think this is worth 11."

He tried to counter.  I left.  He knocked on my car window and said, "Can you do 95 hundred?"

"I can't."  Closed the window.

He knocked again, and said, "Fine.  I'll take the $9,000."  

Complained the whole time during the transaction.

My buddy said, "You should have offered $7,000.  And then he negotiates upward to 9 because he would have felt like he got something he wanted."

The point of the story is I'm wondering if other people do this?  Is cash king?  When people see it, will they almost always fold on their price?  Have people done this to you?  Have you folded?

Curious about the human nature of it all...when you see the cash, do you fold?